US sportsbook giant DraftKings reaches deal to acquire GNOG for $1.56 billion

DraftKings has agreed to a deal to acquire Golden Nuggett Online Gaming (GNOG) from Fertitta Entertainment in a deal valued at about $1.56 billion (€1.33 billion).

With the deal, the company expects to be able to expand its presence in the lucrative market for online betting, combining resources to boost sales and market share.

In a joint statement on Monday, the companies said the deal would yield around $300 million (€255 million) in savings from overlapping costs and create new cross-selling opportunities.

The deal will see GNOG chairman, CEO, and largest shareholder, Tilman Fertitta, who will continue to own the Golden Nugget’s land-based operations, join the DraftKings board.

GNOG’s shareholders still need to vote on the transaction, but the deal has already been unanimously approved by its board.

The agreement will give DraftKings more casino-style betting games and see it expand its market share in sports wagering, which is gaining traction in the US as a general liberalization of sports betting rules takes place.

Subsequently to the deal, DraftKings will reorganise its holding company, and GNOG shareholders will receive 0.365 shares in DraftKings for each of their shares.

Written by

Solomon Cefai

Solomon has an interest in financial markets and innovative business practices. He also loves literature and music. As such, you might find him on the seafront with a cold Kinnie, his trusty headphones, and a good book.